TAO Technical Analysis
TAO, as the native token of the Bittensor network, sits at the center of its AI-focused ecosystem. Recently, the launch of new subnets on the network and the growing number of AI projects starting to use the Bittensor infrastructure have increased interest in TAO. These developments indicate that the project’s use cases in the artificial intelligence space are expanding. For this reason, it is important to observe how this ecosystem activity is being reflected in TAO’s price on the technical chart.
On the technical side, TAO has been trading within a falling wedge structure for some time. The descending trendline from above and the rising support line from below are gradually converging. Structures like this often produce a sharper directional move once the compression phase ends.
At the moment, price is fluctuating within the 187–198 dollar band. The 198 dollar level is particularly important because it marks where recent rebounds have stalled and also sits close to the upper boundary of the wedge. If price manages to break above this level and hold, upward momentum could accelerate. In such a scenario, the first target would be around 215 dollars, followed by the 234 dollar region.
On the downside, the wedge’s lower trendline becomes critical. This line currently aligns with the 176–178 dollar area. If price breaks below this zone, the compression would resolve to the downside and a pullback toward 165 dollars could occur.
In short, TAO is currently in a compression phase searching for direction. A break above 198 dollars could lead to an upside attempt. On the downside, losing the 176 dollar region would strengthen selling pressure again. For that reason, close attention should be paid to which side of the wedge breaks.
These analyses do not provide investment advice and focus on support and resistance levels that are considered to offer short- and medium-term trading opportunities depending on market conditions. However, responsibility for execution and risk management lies entirely with the user. In addition, the use of stop loss is strongly recommended.
